The Valens Company Inc. (TSX: VLNS) (NASDAQ: VLNS) and SNDL Inc. (Nasdaq: SNDL) are closer to becoming one company after they received court approval for the acquisition agreement this week.
This August, SNDL and Valens said the deal is to create a vertically-integrated cannabis platform and on Tuesday they announced it has received final approval from the Ontario Superior Court of Justice for its plan of arrangement.
Under the agreement, SNDL will acquire Valens and its shareholders will receive 0.3334 SNDL shares for each common share of Valens. Based on the Nasdaq Market closing price on Aug. 19 this year, each Valens share costs $1.26 for a total of $138 million.
According to the companies, by integrating the Valens’ product suite into its portfolio, SNDL will increase its overall cannabis market share to 4.5 per cent and its 2.0 product formats market share to 5.2 per cent.
As a result of Valens’ low-cost platform, SNDL will enhance its own product line while offering pricing flexibility to retail partners.
The agreement still remains subject to customary closing conditions and is expected to be completed this month.
Valens stock went up by 5.43 per cent on Wednesday to $0.97 on the Toronto Securities Exchange.
SNDL stock also went up by around 5.56 per cent on Wednesday to $2.18 on the Nasdaq Exchange.
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